Non-Dilutive Share
Content
Definition
A Non-Dilutive Share is a type of share or investment that does not dilute the ownership percentage of existing shareholders.
Usage and Context
Non-dilutive shares allow companies to raise capital without reducing the ownership percentages of current shareholders.
Frequently asked questions
- What is a non-dilution share? A non-dilution share is an investment that does not decrease the ownership percentage of existing shareholders when new shares are issued.
- What does non-dilutive mean? Non-dilutive means that the issuance of new shares or investments does not dilute or reduce the ownership stakes of existing shareholders.
- What is the opposite of diluted shares? The opposite of diluted shares are non-dilutive shares, which maintain the ownership percentages of current shareholders.
Benefits
Non-dilutive shares protect the ownership stakes of existing shareholders, maintain control, and avoid equity dilution.
Conclusion
Non-dilutive shares are beneficial for raising capital while preserving the ownership percentages and control of current shareholders.
